BOC generates millions by offering massive loan for cigarette imports : Cabraal

COLOMBO (News1st): The Bank of Ceylon had generated Rs 31.3 million by offering a Rs 3.1 billion loan to a private company to purchase cigarettes, a state minister has said. "The BOC had approved a loan of Rs 3.1 billion in line with the due procedure after considering the long-term business history and the financial strength of the company," state minister Ajith Nivard Cabraal told Parliament. But opposition leader Sajith Premadasa pointed out that the loan had been granted to D.S Gunasekara (Pvt) Ltd., that has been blacklisted by the Credit Information Bureau as a result of defrauding more than Rs 150 million. "Is it consistent with the policies of the Bank of Ceylon to offer a loan to an entity that hopes to stock cigarettes and earn profits?" Premadasa questioned. State minister Cabraal insisted that the loan had been offered in line with the due process of the BOC. Premadasa also questioned whether there are moves to give away the main office of the BOC to a third party.